One of the Biggest Cable Companies Says Cable TV Isn’t Working

 One of the largest cable providers in the country has a message for the major media businesses that it partners with in a long-standing industry: The existing cable-TV model must be fixed or abandoned.

Charter Communications said in an 11-page presentation to investors on Friday that cable TV has grown too expensive for both users and providers, adding that cord-cutters and rising costs are causing a "vicious video cycle."

The presentation takes place in the midst of negotiations between Charter and The Walt Disney Co., which owns well-known cable channels like ESPN and FX. Until these negotiations are concluded, Charter's almost 15 million pay-TV subscribers won't be able to access Disney's channels. Spectrum TV customers of Charter will be

Channels may go dark on cable systems for days or weeks while cable operators and content creators negotiate the value of the channels and how to package them. These so-called carriage wars are prevalent in the media industry. But the crisis threatening the cable-TV industry has been complicated by Charter's assertion that some aspects of its own economic model are broken.

The conflict occurs at a time when cable TV subscriptions are on the decline: research from SVB MoffettNathanson estimates that more than 5 million Americans cancel their cable TV subscriptions each year.

Nearly all traditional media companies are attempting to maintain their lucrative cable relationships while constructing streaming businesses that will ultimately displace those partnerships. However, investors in conventional media firms have also

The difficulties are exacerbated by the fact that tech giants like Apple and Amazon are willing to pay high bucks for the rights to broadcast live sports, thus raising the price of programming. By providing services like wireless internet, cable companies have weaned themselves off relying solely on traditional TV revenue.

However, in an effort to pressure Disney into a stronger offer, Charter's presentation takes a step further and delivers a damning critique of the cable television sector, which has made hundreds of millions of dollars for businesses like its and Disney over the years. It's an impressive acknowledgement from Charter, one of the businesses that contributed significantly to that expansion.

According to Charter's presentation, "customers are leaving the traditional video ecosystem, and losses have accelerated."

Has the ecosystem of traditional TV reached its

On Friday, Disney retaliated against Charter, claiming that the cable company had rejected a proposal that reflected "market-based terms" and that Disney had suggested innovative ways to make its streaming apps accessible to Charter's cable users. Disney said that its "most favorable terms" on prices, distribution, packaging, and advertising were included in its offer to Charter.

Disney said in a statement that "Charter's actions are a disservice to consumers ahead of the start of the college football season on ABC and ESPN's networks."

The rates Charter will pay for Disney's programming and how those films and television episodes will be given to Charter's subscribers in bundles are under question. According to Charter, it does not want to pay extra for channels that its consumers do not use.

Disney and other content producers are adjusting their own practices. The media conglomerate has declared its intention to provide a streaming version of ESPN, one of its most valuable TV networks and a mainstay of the conventional cable package. The CEO of Disney, Robert Iger, has stated that he is looking into options for ESPN, such as finding a new partner for distribution or programming.

Rich DiGeronimo, head of product and technology at Charter, claimed on Friday that it had suggested a subscription plan that encompassed both traditional television and streaming apps, but Disney had rejected its terms. Charter stated that it was prepared to discontinue offering Disney channels in favor of "alternative video solutions," which included products from Apple and Roku.

Charter has thought about separating several sports